As asserted in standard literature, there is an implicit circular relationship between the productivity growth and the potential level of production (and, consequently, the estimation of the natural rate of unemployment is also altered). In order to avoid such emerging impediment in any...

To estimate long-run growth based on the so-called potential GDP became a constant preoccupation among economists. However, one remaining problem in every long-run growth model is to estimate a persistent trend in labour productivity outside of it, in order to avoid the implicit circular...

Convergence, both nominal and real, is occurring in the EU, especially for new members. Among the macroeconomic variables and correlations closely related to the convergence process are inflation, per capita GDP, the natural rate of unemployment and the inflation-unemployment relationship. This...

Standard economic theory tells that a command system, like the former eastern economies, allocates resources poorly due to the impossibility of accurate calculation. Therefore, once prices are freed and start to operate at quasi-equilibrium (market-clearing) levels, the hidden inefficiencies...

The analysis of labour market in an economy emphasizes the linkage between the unemployment level and the economy structure with its organization and leading mode, and the context of its growth and development. Numerous empirical analyses of unemployment show that a significant part of its level...

China is well-placed to avoid the so-called “middle-income trap” and to continue to converge towards the more advanced economies, even though growth is likely to slow from near double-digit rates in the first decade of this millennium to around 7% at the 2020 horizon. However, in order to...

China is well-placed to avoid the so-called “middle-income trap” and to continue to converge towards the more advanced economies, even though growth is likely to slow from near double-digit rates in the first decade of this millennium to around 7% at the 2020 horizon. However, in order to...

Standard economic theory tells that a command system, like the former eastern economies, allocates resources poorly due to the impossibility of accurate calculation. Therefore, once prices are freed and start to operate at quasi-equilibrium (market-clearing) levels, the hidden inefficiencies...

A main problem for macroeconomic studies continues to be the estimation of capital stock and some derived indicators like coefficient of capital, depreciation rate, etc. In this way we are proposing a simple and intuitively model in order to estimate such basic macroeconomic indicators but...

Potential GDP and the NAIRU of Mexico are estimated using a Cobb-Douglas production function combined with a Kalman filter, under the assumption of three different behaviors of total factor productivity. A growth accounting exercise is carried out to identify the factor contribution of labor and...